Contact: Joel Hekler
Email: [email protected]
Your Reference ID: jh82219
It has been a great 25 year run for the founder-owner-seller of this profitable auto body panel replacement business, but age and health issues have combined to force the owner to plan to sell his business to only its second owner-operator.
Talk about great opportunities: the business could not be better located – it is right in the heart of the Eastern Michigan Mega Auto Auction facility. Couple the ideal location with the fact that the seller has fallen way behind standard business IT and marketing practices (examples: there is neither a website nor cell phone) which should be easy fixes that bode well for a growth-minded buyer.
The business generates new customers exclusively from positive word-of-mouth from a multitude of happy customers. The successful buyer of this business could presumably parlay a solid base of satisfied customers with the addition of a website, making select sales calls and offering delivery – all three of which are currently absent from this business.
Let’s look at the numbers: the company has annual sales exceeding $200,000 and a solid SDE (seller’s discretionary earnings = the historical cash flow available to pay the buyer and service debt) of $55,000. The asking price for (a) the business, (b) a good and salable $25,000 inventory, and (c) a 2,500 square foot building is just $149,000 all-in. So, it’s like paying a 2.70x multiple of SDE for just the business and getting the inventory and real estate for free. And for an undercapitalized but otherwise qualified buyer, the seller will carry a meaningful seller note with favorable terms.
The business currently uses only one-half of the building – the balance is available to handle growth or to rent to a third party. Don’t forget the great location of the business and real estate which is on a heavily traveled street in the middle of the auction area.
This unique, sleepy, cash flowing business would be an excellent strategic acquisition for an existing body shop and/or automotive sales operation. For a financial buyer, this value priced opportunity would be perfect for a go-getter who wants to take advantage of all the opportunity this business has to offer.
For more information please call Joel Hekler (Praxis Business Brokers) at 517-719-6401).
Real estate valued at $90,000 is included in the sale.
Location(s): Flint, Mid-Michigan
Asking Price: $149,000
Cash Flow: $55,000